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Gold Buying may rise as Buffett hints at inflation 'onslaught'

The world's richest man claimed on Saturday (February 28th) that the economy could be about to embark on an "onslaught" of inflation, Reuters reports.

Warren Buffett, whose company Berkshire Hathaway Inc is currently worth around $25.54 billion, made a host of negative assessments of treasury debt in his annual letter to shareholders.

If his comments are to be believed, then anyone with a Gold Investment will be looking to make a massive return, as inflation tends to send the price of the yellow metal rocketing.

According to the news provider, Mr. Buffett wrote: "In poker terms, the [US] Treasury and the Fed have gone 'all in'. Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel.

"These once-unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation."

Gold Prices have already shown their resilience in the worst deflationary collapse since the 1930s, so the 'Oracle of Omaha's' comments appear to underline how well they could perform in an inflationary environment.

His argument was echoed last week by David Thurtell, an analyst at major US institution Citigroup, who explained that investors are realizing the value of putting their money into gold.

"People are saying equities are still too risky, bonds are shaky - [gold] is just very, very attractive at the moment," he told Reuters.

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